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Westwego senior citizens programs criticized in draft audit

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Westwego Mayor John Shaddinger addressing the audience at last year's inauguration. The Legislative auditor has issued a scathing draft audit of the city's senior citizens programs and how city officials handled donated money. Auditors say state ethics laws might have been broken and recommend that city officials detail how Ted Bergeron, who coordinated the senior programs, handled money donated to the city that was transferred to a nonprofit he helps head, Louisiana Kids Inc. The Jefferson Parish district attorney's office last year investigated, concluding it found no intent to commit a theft but left open the possibility that the city might have violated ethics laws.
(Kevin Zansler / The Times-Picayune)

Westwego's government is not appropriately overseeing its senior citizens programs, and the city employee who coordinated those programs might have broken state ethics laws in the way he handled money donated for events for elderly residents, according to a draft report from the state legislative auditor. The report, a copy of which was obtained by NOLA.com | The Times-Picayune, is still a work in progress and has not been prepared for public release.

But the draft report was released to Westwego officials about two weeks ago, around the time that senior citizens program coordinator Ted Bergeron resigned. Mayor Johnny Shaddinger said Monday that Bergeron's resignation is unrelated to the audit. Bergeron has accepted a job at a solar panel distributor company that pays "three times more" than what Westwego pays him, Shaddinger said. Bergeron could not be reached immediately for comment Monday.

"Just some mistakes were made, and that's because we had a very, very aggressive coordinator who was always trying to do something for seniors," Shaddinger said of Bergeron. "And maybe he didn't always follow all the rules and dot the Is and cross the Ts. ... I can assure you him leaving has nothing to with the auditor's report."

Auditors found that Bergeron, whom Shaddinger appointed to the job at the Ernest J. Tassin Senior Center, might have broken state ethics law by accepting money donated to him for performing his job. Bergeron told auditors "that people occasionally gave him money personally as a reward for his assistance to the seniors, and that he kept these personal donations in a folder and only spent them on the center," according to the report.

Ted BergeronLouisiana Kids Inc.

"Subsequently, (Bergeron) told us that he did not spend any of these donations," auditors wrote. Bergeron "further stated that he accepted money that was 'found on the floor' of the center or was personally given to him for such things as his birthday and lunch."

Auditors recommended the city check to ensure the money was spent legally, and to establish policies to ensure employees are behaving ethically. Shaddinger said the city is working with auditors.

"It's a draft," Shaddinger said of the audit. "We're actually meeting with them to discuss some of the recommendations they made. It's not the end of the world."

In the meantime, the mayor said he has hired Brant Fonseca to succeed Bergeron. Fonseca, who ran for a City Council seat in 2009, is not related to Councilman Norman Fonseca, the mayor said. "I know him quite well, and I believe he's got the will and the ability and the passion for the senior center," Shaddinger said.

The Jefferson Parish district attorney's office last year investigated the seniors programs at the request of Police Chief Dwayne "Poncho" Munch," looking at how the city handled cash that was donated to the city to pay for activities it provides to its elderly residents. Prosecutors concluded found no intent on Westwego officials' part to commit the crime of theft but concluded ethics laws might have been violated.

At the same time prosecutors released their findings to Munch, the legislative auditor's office was questioning Westwego officials. Both investigations looked at how the city used money that was donated for use to benefit senior citizens programs.

Shaddinger said last year that Bergeron received about $11,000 in donations. Auditors said it was o be used to pay for gifts and meals for senior citizens. Prosecutors noted a meal at August Moon restaurant in which a $200 tip was left for the service staff.

The donated money initially was deposited in one of Westwego's bank accounts. As such, prosecutors said last year, the money had to be spent within legal limits; gifts and meals weren't allowed. To get around this, the city transferred the balance of donated money, $4,374, to Bergeron's nonprofit, Louisiana Kids Inc.

Through Louisiana Kids Inc., the city could legally spend the money on seniors, city officials concluded. "According to the mayor, he chose Louisiana Kids because he was familiar with the organization and its director (Bergeron), and felt this familiarity would help him get the money transferred in the quickest way possible," auditors wrote.

That, however, appeared to create a conflict of interest, auditors concluded, because Bergeron was both a city employee and officer in Louisiana Kids Inc. Auditors also said the transaction might have violated state law.

Bergeron told auditors he spent the money on items such as Angola prison rodeo tickets, lockets, necklaces and insulated drink mugs, according to the report. As of Sept. 6, Louisiana Kids Inc. had about $1,027 left of the donated money.

Auditors recommended that the city review how Bergeron spent the money, and that the city adopt a policy governing how donated money may be used in the future. The city should also have had a cooperative endeavor agreement with Louisiana Kids Inc., or any other nonprofit, before transferring the money, auditors recommended.

The report also found that the city has no policies and procedures in place through which officials could independently determine whether procedures were followed in January 2013, when Bergeron accompanied a group of senior citizens on a cruise to Latin America, auditors said. The auditors could not determine whether the city should even be sponsoring such cruises, because of the lack of policies. The city did not pay for the cruise, but it did obtain liability insurance because of it, and Bergeron used vacation leave to go accompany the seniors, auditors said.

"We noted that in addition to the cruise, the (Tassin) center organized excursions in 2012 to over two dozen venues, including shopping malls, casinos, restaurants and entertainment sites in and out of state," auditors wrote. "Again, without a clear mission and specific policies and procedures to guide center operations, there are no standards clearly establishing which activities are allowable and which are not."

At the time, Council on Aging officials were critical of events the city was providing for the seniors, events that went beyond the council's core mission of providing services such as meals to shut-ins. One council board member said last year that Westwego seemed to run more of "a social" group.

Auditors recommended that Westwego's mayor and City Council work to adopt policies and procedures to guide how the Tassin center is operated. The center's coordinator should work with the elected officials in establishing these policies, with guidance from the Governor's Office of Elderly Affairs, auditors recommended.

Auditors also concluded that the city lacks control over the Tassin center's personnel and payroll. While the city caps the accumulation of overtime pay at 240 hours, Bergeron had a balance of 625 compensatory hours in 2012. By May 2013, Bergeron had reached 794 hours of overtime. Upon Shaddinger's approval, the city paid Bergeron $7,634 for 554 hours of overtime.

Auditors also fund that no one was reviewing timecards. "That is, there was no documentation on the timecards to indicate that the hours shown as worked were reviewed by the mayor for accuracy, reasonableness or compliance with policy," auditors wrote.

"We were informed that there is no requirement of city supervisors to document their review and approval of timecards," auditors wrote.